The Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.

The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Its rules ensure cash continues to be a viable method of payment for the millions of people who depend on it and help businesses to continue to accept cash by providing reasonable access to cash deposit facilities.

Under the FCA’s regime the UK’s largest banks and building societies are required to assess the impact of a closure or material alteration of a relevant cash withdrawal or deposit facility and put in place a new service if necessary. Assessments are undertaken by LINK, the industry designated coordinating body responsible for conducting cash access assessments.

Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment to LINK. Further information about submitting a cash access request can be found on LINK’s website.

In circumstances where LINK considers that a community requires additional cash services, the financial services sector will provide a suitable shared solution, such as an ATM, cash deposit service, or shared Banking Hub, for cash users in that community.

To ensure appropriate cash access facilities are in place to support communities and businesses across the country, the Government is working closely with industry to roll out 350 banking hubs across the UK by the end of this Parliament. These hubs will provide small businesses and individuals with critical cash and in-person banking services. Over 225 banking hubs have been recommended to date and over 150 are already open.

The government recognises that while the transition towards digital payments brings many opportunities cash remains an important part of daily life for millions of people across the UK, including those who may be in vulnerable groups or elderly. The government remains closely engaged with the financial regulators, including through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor trends relating to the use of cash by people and businesses.

In the Queen’s Speech in May 2022 the government announced that it will introduce legislation to protect access to cash as part of the Financial Services and Markets Bill. The government intends to establish the FCA as the lead regulator for access to cash with responsibility to ensure that people can continue to access cash withdrawal and deposit facilities. Through this legislation the government intends to ensure that people can continue to use cash in their day-to-day lives. The Bill will be brought forward when Parliamentary time allows.

The FCA has published research on cash acceptance by small and medium-sized enterprises (SMEs), which found that the primary motivation for accepting cash is to provide customers with choice. While it remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card, nearly all (98%) of surveyed businesses stated they would never turn away a customer if they needed to pay by cash.

Nonetheless, the Government recognises that the ability to transact in cash remains important to millions of people across the UK and has committed to legislating to protect access to cash.

Throughout the Covid-19 pandemic, the Government has worked closely with the financial regulators to ensure firms maintain branch access for essential services, while balancing the needs of their customers with the safety and welfare of staff. The vast majority of people have continued to have access to cash during the pandemic.

The Government recently consulted on legislative proposals to make sure people only need to travel a reasonable distance to pay in or take out cash. The Government’s proposals stand to support the continued use of cash in people’s daily lives and to help local businesses to continue accepting cash by ensuring access to deposit facilities.

The Government also made legislative changes to support the widespread offering of cashback without a purchase by shops and other businesses as part of the Financial Services Act 2021. Cashback without a purchase has the potential to play an important role in the UK’s cash infrastructure. The financial services industry is already seeking to take advantage of the changes to the law for the benefit of cash users; working with retailers to roll out new services to local communities.

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